Questions swirl about future of St. Mary fabrication yard

Published: Friday, June 7, 2013 at 7:37 p.m.

Last Modified: Friday, June 7, 2013 at 7:37 p.m.

Local government officials say the future of the McDermott International fabrication yard in Amelia is unclear.

The yard regularly employs more than 1,000 workers, many from Lafourche and Terrebonne parishes, said St. Mary Parish President Paul Naquin Jr.

Naquin said a stalled BP contract and an upcoming lease renewal on the yard have raised questions about the fabricator’s future at the location. He stressed nothing is certain, and McDermott has confirmed nothing.

“It’s a rumor, but it is one that is putting a lot of fear out there for the families that work there,” said State Rep. Joe Harrison, R-Napoleonville.

Harrison and Naquin said the yard was in the running for a large fabrication contract tied to a deepwater platform for oil giant BP. The project was expected to bring in nearly 1,500 workers to the yard. BP pulled back on that contract, leaving questions about what comes next for the yard.

Naquin said he understands there are three platform projects still in progress but nearing completion at the yard.

“These yards go through this every now and then,” Naquin said. “They’ve been a good partner with us, Terrebonne, Lafourche and Assumption. They’ve been here almost 50 years. Hopefully, they are going to find more work for the yard.”

Naquin also noted the lease on the yard expires in 2014, and the landowner has confirmed to him that McDermott has not yet renewed. He said he’s also heard “second and third hand” of layoffs and transfer offers.

In a written statement, McDermott spokeswoman Louise Denly did not confirm or deny rumors about the yard’s future.

“Our Morgan City facility is currently operating with a backlog of work. We did recently reduce our work force at the yard in response to current work demand. Like any construction company in the offshore oil and gas industry, from time to time, we must adjust our workforce to be in line with our work in-hand,” Denly said.

Industry magazine Upstream has published reports about the yard’s potential closing in recent months.

On May 24, the magazine quoted an unnamed source saying 80 percent of the yard would be laid off in an effort to permanently close it. The article also reports chief executive Stephen Johnson’s complaints about lower labor productivity in the facility.

<p>Local government officials say the future of the McDermott International fabrication yard in Amelia is unclear. </p><p>The yard regularly employs more than 1,000 workers, many from Lafourche and Terrebonne parishes, said St. Mary Parish President Paul Naquin Jr. </p><p>Naquin said a stalled BP contract and an upcoming lease renewal on the yard have raised questions about the fabricator's future at the location. He stressed nothing is certain, and McDermott has confirmed nothing. </p><p>“It's a rumor, but it is one that is putting a lot of fear out there for the families that work there,” said State Rep. Joe Harrison, R-Napoleonville. </p><p>Harrison and Naquin said the yard was in the running for a large fabrication contract tied to a deepwater platform for oil giant BP. The project was expected to bring in nearly 1,500 workers to the yard. BP pulled back on that contract, leaving questions about what comes next for the yard. </p><p>Naquin said he understands there are three platform projects still in progress but nearing completion at the yard.</p><p>“These yards go through this every now and then,” Naquin said. “They've been a good partner with us, Terrebonne, Lafourche and Assumption. They've been here almost 50 years. Hopefully, they are going to find more work for the yard.”</p><p>Naquin also noted the lease on the yard expires in 2014, and the landowner has confirmed to him that McDermott has not yet renewed. He said he's also heard “second and third hand” of layoffs and transfer offers. </p><p>In a written statement, McDermott spokeswoman Louise Denly did not confirm or deny rumors about the yard's future.</p><p>“Our Morgan City facility is currently operating with a backlog of work. We did recently reduce our work force at the yard in response to current work demand. Like any construction company in the offshore oil and gas industry, from time to time, we must adjust our workforce to be in line with our work in-hand,” Denly said. </p><p>Industry magazine Upstream has published reports about the yard's potential closing in recent months. </p><p>On May 24, the magazine quoted an unnamed source saying 80 percent of the yard would be laid off in an effort to permanently close it. The article also reports chief executive Stephen Johnson's complaints about lower labor productivity in the facility.</p>